A corporate communications consultancy’s yearly analysis of FTSE 100 Annual Reports indicates that companies are responding positively to the 2014 Strategic Report regulatory changes.

Black Sun’s annual review shows that the overall quality of content, particularly in relation to transparency of business strategy, has improved.

Business model is now a key component of the report, 62% of companies provide a detailed or very detailed explanation of their business model, up from 12% four years ago. Reports have become more strategic, and companies more accountable. Diversity has also moved up in the agenda with 83% of companies providing gender diversity information. Greenhouse gas emission reporting has also made its way into the Strategic Reports of 50% of companies.

Sallie Pilot, Black Sun’s director of research and strategy, says, “Although challenging areas in reporting still exist, the new regulations have been a catalyst for positive change which has brought about an encouraging improvement in the quality of content and communications. While the improvements are most prominent in those areas where regulatory change has been focused, there has been a general move for companies towards ‘best practice’ reporting. Undoubtedly, it seems that BIS’s ambitions for the narrative reporting reforms – to bring reporting standards up to one of ‘best practice’ – are beginning to be realised.”